3 months ago
Franchised car dealership chain Marsh Wall suffered a pre-tax profit slump of almost 43% last year on turnover that went up by nearly 8%.
According to its newly published accounts for the year ended December 31, 2023, the Car Dealer Top 100 firm, which holds the franchises for BMW and Mini and uses the trading name of Berry and Berry Group, saw revenue increase from £383.156m to £412.999m.
However, profit before tax went down from £12.035m to £6.88m. Meanwhile, Ebitda sank by 23.8% from £13.146m to £10.021m.
Nevertheless, in the accompanying strategic report, signed on behalf of the board by director Wayne Berry, Marsh Wall hailed 2023 as ‘another successful year of trading’, adding that the increase in turnover showed ‘the success of the consolidation of the group’.
However, the board noted the economic downturn – in particular the rise in the cost of living as well as interest rate increases.
Directors’ remuneration went up from £250,834 to £333,574, with the highest-paid director receiving £179,318 – up from £143,486.
Ordinary dividends were paid amounting to £1.5m but the directors didn’t recommend paying a final dividend.
The average number of employees at the company, whose registered office is in Hounslow, rose from 487 to 512.
In the report, the board said: ‘The company focus in 2023 was to continue to consolidate the business and rationalise process following the rapid growth of the previous years.
‘The successful opening of the approved repair and select used car outlet at Banstead further adds to the representation of the company. This site is known as “Berry Banstead” and “Berry Select Cars”. The 2023 profit result was above budget.’
Looking ahead, the directors said: ‘Trading in 2024 started well, as the company took decisions in late 2023 to deal with overpriced used cars due to the falling market values.
‘This allowed the company to start the year strong and is expected to continue strong and meet budget levels set.
‘There are some new vehicle supply issues, but we expect these to be overcome by the second half of the year.
‘Our aftersales departments will continue to perform strongly given the high demand in the inner M25. We expect results to be in line with our budgeted profit predictions for 2024.’
They added: ‘The group intends to extend its investment in solar panel technology and will begin phase two of the project with the new freeholds at Banstead and Chiswick and Thames Ditton in 2024/5.’
Pictured at top via Google Street View is the Berry BMW showroom in Thames Ditton
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The post Marsh Wall directors hail ‘another successful year of trading’ despite profit slump appeared first on Car Dealer Magazine.
